Mr. Chaddles' Blog
May 22, 2020
The Ideal Agent Scam
Ideal Agent takes their play from Redfin and just blatantly ignores false advertising laws. They do not charge a 2% real estate commission. Always read the asterisk. Here is Ideal Agent's asterisk.
"Our agents will list for 2% and offer the typical Buyer's Agent commission in your market ranging from 2% to 3%. The average Buyer's Agent commission nationwide is 2.5%. If a buyer calls on your house directly without an agent, our agents have agreed to do the entire transaction for only 2% total. Homes under $150,000 will have a minimum list side commission of $3,000."
In Massachusetts, 95%+ of buyers in real estate transactions are represented by an agent, so the chances of not paying a buyer's commission is very slim. When the chances are that slim you can't truthfully advertise your commission at 2% by just adding an asterisk and downplaying the details. It's misleading and is the definition of false advertising.
The average listing fee rate in Massachusetts is between 4% to 5%. Ideal Agent's total commission is stated to be around 4.5%. You can find excellent agency in Massachusetts at the 4% rate, so what exactly is Ideal Agent saving you? That's not to mention that many Massachusetts agents will give back the buyer's agent commission in case of the unlikely chance that the buyer isn't represented. Again, what in the world is Ideal Agent saving you?
But they have the best agents, the top 1%, that will do it at the low end commission, as they tell you. If an agent is in the top 1% of sales why are they going to take a discount to work with Ideal Agent? They're business is already great, why do they need to short change themself by lowering their commission and then paying Ideal Agent a referral fee as well? That on basis doesn't make much sense.
In their commercial they say, "We are not a discount brokerage". That is misleading in itself. It's a slick way for them to make themselves sound like a full service brokerage when they really are just middle people making money off of referral fees. It shouldn't be called Ideal Agent, it should be called Slick Agent.
Ideal Agent is a middle person who has thought of way to make money by charging referral fees. Everything else is marketing. Unfortunately, it's not truthful marketing and meets the definition of false advertising.
Next week I'll discuss Homelight, another referral based money making system. They say they will connect you with the best agent and will sell your home faster and for more money. More like selling your home at the same speed for the same money while charging the "best agent" 25%. The marketing devil is really in the details.
Mr. Chaddles Previous Blog Posts:
May 15, 2020: The Redfin Scam
May 5, 2020: Rt. 1 North's Missing On-Ramp in Revere
February 12, 2016: Mr. Buttersworth Asks You to Adopt
February 9, 2016: Possibly the Most Amazing House Ever
February 3, 2016: 9 Famous Spite Houses Built to Annoy the Neighbor
February 1, 2016: Rare Mr. Buttersworth Sighting
August 9, 2012: Yesterday I'm Driving Down the Street...
August 5, 2012: Real life Mufasa and Simba
August 5, 2012: Lower Pond at Breakheart
SEE ALL BLOG POSTS HERE
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